Lets talk first about how to apply for employee retention credit in Hattiesburg for Coastal and Great Lakes Freight Transportation …
Anytime if you have workers between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply phone your bank supervisor and state offer me a loan it does not work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund fine go on sorry I simply have to ensure we got that point I imply that’s a huge distinction a loan versus money money I like money money that’s what we’re speaking about fine and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have actually owned a business however it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 employees and you paid federal payroll taxes that’s why you would be eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the big concern is why does no one know about this due to the fact that appearance when I first became aware of this when I first satisfied Josh you understand I have actually got great deals of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it since I use the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them sensibly to stay alive during the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my political leader buddies Guv Senators they didn’t know about it I indicate that’s how you know that’s how false information is that there’s no info out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s fascinating you’re speaking about the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was mayhem because keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never done this prior to unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have dealt with bottom line to recover other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
Are you Eligible for Hattiesburg Coastal and Great Lakes Freight Transportation ERC Find out now
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose company is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes varies by whether a company had, typically, basically than.
100 workers in 2019.
Companies that focus on ERC filing help generally offer proficiency and support to assist businesses navigate the complicated procedure of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit For 4Th Quarter 2021
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based upon elements such as your market, income, and operations. They can assist determine if you fulfill the requirements for the credit and determine the maximum credit amount you can claim.
Documentation and Computation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and financial statements, to support your claim. They will also help calculate the credit quantity based on qualified incomes and other certifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine potential chances for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and submit the needed forms and paperwork in your place. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved with time. These business stay updated with the current changes and guarantee that your filings abide by the most current standards. If the IRS demands extra information or performs an audit related to your ERC claim, they can likewise provide ongoing support.
It is essential to research and veterinarian any business using ERC filing support to ensure their reliability and proficiency. Try to find recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who use ERC filing assistance.
Bear in mind that while these business can provide important support, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage companies to maintain and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, companies must fulfill one of two requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As mentioned previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of qualified incomes paid to staff members, including specific health plan expenses. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, allowing eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have evolved over time. The best strategy is to seek advice from a tax expert or go to the official IRS website for the most current and in-depth info regarding the ERC, consisting of any recent legislative modifications or updates.
To get approved for the ERC, a company needs to meet among the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and services that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC includes finishing the essential types and consisting of the credit on your employment tax return (normally Form 941). The exact time it takes to process the credit can vary based on numerous elements, consisting of the intricacy of your company and the workload of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance specific to your circumstance.
There are several business that can help with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some widely known business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business straight to inquire about their charges and services.